In July, Pennsylvania passed a local resource tax credit for manufacturers who use methane (natural gas) to make fertilizer, fuel, and other products. The economic impact of this bill could offer tremendous positive affects for thousands of Pennsylvania workers and their families.
A Pennsylvania Manufacturers’ Association (PMA) analysis of the impact of the legislation found that over the course of the 30-month construction phase of four manufacturing plants that use the credit an astonishing $600 million in wages will be paid to workers, and over 4,400 new jobs will be created at the plants. For example, the new nitrogenous fertilizer manufacturing facility in Clinton County, Pa. would see over than 526 jobs, more than $83 million of labor income, and roughly $119 million of value added, spurring almost $261 million in total economic output a year, according to the PMA study.
Governor Wolf vetoed a previous version of the bill on March 27, 2020, but ultimately supported a revised version, which was heavily backed by unions in Pennsylvania. The bill received bipartisan support and has passed both chambers with a 40-9 vote in the Senate on Monday and a 163-38 vote in the House on Tuesday.
Senator John Yudichak said in a statement released after passage of the bill;
“The Local Resource Manufacturing Tax Credit, which will set the stage for transformative economic growth across a wide swath of industries from the construction trades to manufacturing and energy jobs, is the product of a thoughtful, bipartisan compromise with Governor Tom Wolf and the legislature that proves government can deliver on the promise of economic opportunity for all.”
Representative Aaron Kaufner noted that this legislation will incentivize manufacturer to plant roots in the state, generate large revenues, boost economic activity and provide tremendous opportunities for job growth. This bill will be an economic boon for the state of Pennsylvania, directly benefiting citizens’ lives.
PMA President & CEO, David N. Taylor espoused belief that this could assist Pennsylvania in a post-COVID-19 world, eloquently summarizing,
“While making new products like fertilizers and fuel, these manufacturing facilities will create high-value jobs, expand the use of Pennsylvania energy, and attract related industries and additional investments, all of which will accelerate our economic recovery.”